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PRESIDENTIAL DECREE NO. 1063
PRESIDENTIAL DECREE NO. 1063 -
AMENDING PRESIDENTIAL DECREE NO. 350 CREATING THE PHILIPPINE COTTON
CORPORATION AS A CENTRAL AUTHORITY TO UNDERTAKE, IMPLEMENT AND
SUPERVISE COTTON PRODUCTION IN THE PHILIPPINES ON A COMMERCIAL SCALE
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WHEREAS,
the Philippine Cotton Corporation in its first two years of operation
has shown clearly that commercial-scale cotton cultivation can
successfully be undertaken in the Philippines;chanroblesvirtualawlibrary
WHEREAS, the attainment of self-sufficiency in essential agricultural
commodities, one of which is cotton, has been defined as a priority
area of concern of the Government;chanroblesvirtualawlibrary
WHEREAS, there is need to strengthen the Philippine Cotton Corporation
and to expand its resources to enable it to effectively implement a
cotton development programmed at making the country self-sufficient in
cotton within the shortest time possible;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution of the
Philippines, do hereby order and decree the following: chanroblesvirtualawlibrary
Section 1. Number 3 of Presidential Decree No. 350 is
hereby amended to include the following:cralaw:red
J. TO ADMINISTER SUCH FUNDS INCLUDING TRUST FUNDS, AS
MAY BE SET UP OR PROVIDED BY THE NATIONAL GOVERNMENT OR BY ANY
INSTITUTION OR ENTITY WHETHER PUBLIC OR PRIVATE, DOMESTIC OR FOREIGN,
IN CONNECTION WITH THE NATIONAL COTTON DEVELOPMENT PROGRAM; AND
K. TO ACCEPT DONATIONS AND GRANTS FROM GOVERNMENTS
AND PRIVATE ENTITIES, WHETHER LOCAL OR FOREIGN, AND TO ADMINISTER THE
SAME IN ACCORDANCE WITH THE TERMS OF THE DONATION OR GRANT, CONSISTENT
WITH THE COTTON DEVELOPMENT PROGRAM, OR THE SUCH MANNER AS MAY BE
DEEMED APPROPRIATE BY THE BOARD.
Section 2. Number 4 of Presidential Decree No. 350 is
hereby deleted.
["4. The Corporation will be a joint venture between
the Philippine Government and the private sector on a 60-40 ownership
ratio. The Philippine Government shall be represented by the Department
of Agriculture and Natural Resources. The private sector shall be
represented by the textile millers presently using cotton as a raw
material in its textile milling operations."]
Section 3. Number 5 of Presidential Decree No. 350 is
hereby deleted.
["5. The Corporation will have an [initial authorized
capital stock of [P20M] ONE HUNDRED MILLION PESOS (P100M) [and an
initial paid-up capital of P1 million.] THE SUM OF SEVENTY MILLION
PESOS (P70M OF THE CAPITAL STOCK SHALL BE SUBSCRIBED AND PAID FOR BY
THE PHILIPPINE GOVERNMENT. THE SUM OF THIRTY MILLION PESOS (P30M) OF
THE CAPITAL STOCK WILL BE AVAILABLE FOR SUBSCRIPTION BY
GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS AND/OR PRIVATE INVESTORS."]
Section 4. Number 6 and 7 of Presidential Decree No.
350 are hereby deleted.
["6. Initial contributions of the Philippine
Government and the private sector will be P600,000 (60%) and P400,000
(40%), respectively. The 60-40 ownership ratio between the Government
and private sector shall be maintained at all times."] chanroblesvirtualawlibrary
["7. The contribution of the Philippine Government
shall be paid out of the funds held in trust by the Philippine Textiles
Research Institute (PTRI). The contribution of the private sector shall
be made by the individual cotton-consuming textile millers through the
Textile Millers Association of the Philippines. The share of each
cotton-consuming textile mill in the capital contribution of the
private sector shall be established pro rata based on the actual cotton
consumption of the mills."]
Section 5. Number 8 of Presidential Decree No. 350 is
hereby amended to read as follows:cralaw:red
"8. The Corporation shall be governed by a Board of
eleven members [six from the government sector and five from the
private sector.]
The government sector will be presented in the Board by the [incumbent]
Secretary of Agriculture [and Natural Resources], the Director of the
Philippine Textile Research Institute (PTRI), [the Chairman of the
Advisory Committee of the PTRI and three] AND FOUR others who will be
appointed by the Secretary of Agriculture [and Natural Resources] FROM
THE GOVERNMENT SERVICE. The private sector shall be represented IN THE
BOARD by [the incumbent president of the Textile Millers Association
and four others appointed by the Board of the Textile Millers
Association] TWO MEMBERS FROM THE TEXTILE PRESIDENT OF THE TEXTILE
MILLERS ASSOCIATION OF THE PHILIPPINES (TMAP) AND THE OTHER TO BE
NOMINATED BY THE TAMP BOARD. THREE OTHER MEMBERS SHALL BE ELECTED BY
THE STOCKHOLDERS. [The Secretary of Agriculture and Natural Resources
shall be the Chairman of the Board.] THE CHAIRMAN AND THE VICE-CHAIRMAN
OF THE BOARD SHALL BE ELECTED BY THE MEMBERS THEREOF. chanroblesvirtualawlibrary
Section 6. Number 9 of Presidential Decree No. 350 is
hereby amended to read as follows:cralaw:red
["9. The administration of the Corporation will be
directed by a qualified General Manager who will come from the private
sector and who will be appointed by the Board."]
THE CORPORATION SHALL BE HEADED BY A PRESIDENT WHO WILL BE APPOINTED BY
THE BOARD FROM AMONG QUALIFIED INDIVIDUALS IN THE PRIVATE SECTOR. THE
BOARD MAY ALSO CREATE THE POSITIONS OF EXECUTIVE VICE-PRESIDENT AND/OR
GENERAL MANAGER AND SUCH OTHER VICE PRESIDENTIAL POSITIONS AS MAY BE
DEEMED NECESSARY BY THE BOARD. THEIR COMPENSATION INCLUDING ALLOWANCES
SHALL BE DETERMINED BY THE BOARD."
Section 7. Number 11 of Presidential Decree No. 350
is hereby amended to read as follows:cralaw:red
"11. In financing its development functions, the
Philippine Cotton Corporation [will] MAY approach DOMESTIC AND
international sources of financing, both multilateral and bilateral,
for assistance in terms of either grants or loans, or both."
Section 8. Number 12 of Presidential Decree No. 350
is hereby amended to read as follows: chanroblesvirtualawlibrary
"12. In order to provide additional financing for
research and development or feasibility studies, the PTRI will make
available as a grant to PCC, not later than 30 days after the beginning
of each fiscal year, the minimum sum of P500,000. This funding from
PTRI should, in no case, prejudice the efforts of PCC to obtain
financing from other sources. [as mentioned in paragraph 11 above.]"
[The PTRI is hereby authorized to invest the Special Textile Research
Fund in any financial instruments, including commercial papers, which
will yield a sufficiently high level of earnings to enable the
organization to assist the Philippine Cotton Corporation and other
research projects contemplated by R.A. 4086."]
Section 9. That new numbers to be known as numbers
14, 15 and 16 shall be added to read as follows:cralaw:red
"14. THE PROVISION OF ANY LAW TO THE CONTRARY
NOTWITHSTANDING, ANY FINANCIAL INSTITUTION OWNED OR CONTROLLED BY THE
GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES, WITH THE EXCEPTION OF
THE CENTRAL BANK OF THE PHILIPPINES, IS HEREBY EMPOWERED TO GUARANTEE
ACCEPTANCE CREDITS, LOANS, TRANSACTIONS, UNDERTAKINGS, OR OBLIGATIONS
OF ANY KIND WHICH MAY BE INCURRED BY THE CORPORATION, WHETHER DIRECTLY
OR INDIRECTLY, IN FAVOR OF ANY PERSON, ASSOCIATION OR ENTITY, WHETHER
DOMESTIC OR FOREIGN."
"15. IN ADDITION TO ANY OTHER POWER HEREIN GRANTED TO
THE CORPORATION, WHENEVER THE BOARD DEEMS IT NECESSARY FOR THE
CORPORATION TO ISSUE BONDS, WHETHER DENOMINATED IN PHILIPPINE CURRENCY
OR ANY CONVERTIBLE FOREIGN CURRENCY, IT MAY DO SO BY RESOLUTION WHICH
SHALL DECLARE AND STATE THE PURPOSE FOR WHICH THE PROPOSED BOND ISSUE
IS TO BE INCURRED. IN ORDER THAT ANY SUCH BOND ISSUE MAY BE VALID,
HOWEVER, IT SHALL BE APPROVED BY THE PRESIDENT OF THE PHILIPPINES, UPON
THE RECOMMENDATION OF THE SECRETARY OF FINANCE. THE REPUBLIC OF THE
PHILIPPINES SHALL GUARANTEE THE PAYMENT OF BOTH THE PRINCIPAL AND THE
INTEREST OF THE BONDS. chanroblesvirtualawlibrary
INVESTMENT BY BANKING INSTITUTIONS IN SUCH BONDS SHALL BE DEEMED
INVESTMENT IN AGRICULTURAL CREDIT, IN COMPLIANCE WITH THE PROVISIONS OF
PRESIDENTIAL DECREE NO. 717, AND ITS IMPLEMENTING RULES AND
REGULATIONS."
"16. THE REPUBLIC OF THE PHILIPPINES SHALL GUARANTEE
THE PAYMENT OF ALL OBLIGATIONS OF THE CORPORATION INCURRED WITH ANY
GOVERNMENT-OWNED OR CONTROLLED FINANCIAL INSTITUTION AND SHALL PAY THE
PRINCIPAL AND INTEREST ON SUCH OBLIGATIONS IN CASE THE CORPORATION
FAILS TO DO SO.
Section 10. All laws, executive orders,
administrative orders, proclamations or decrees or parts thereof
inconsistent with any of the provisions of this decree are hereby
repealed or modified accordingly.
* Section 12. This Decree shall take effect
immediately.
Done in the City of Manila,
this 16th day of December, in the year of Our Lord, nineteen hundred
seventy-six.
* Copied verbatim from documents obtained directly
from Malacañang Records (missing Section 11).
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